Congresswoman Tenney Introduces Legislation to Support Growth of Rural Communities
Washington, DC – Congresswoman Claudia Tenney (NY-24), member of the House Ways and Means Committee, today introduced the New Markets Tax Credit Extension (NMTC) Act of 2023. This bipartisan legislation would make the NMTC permanent, index the allocation to inflation in future years, and exempt NMTC investments from the Alternative Minimum Tax.
Tenney led this piece of legislation alongside Rep. Kelly (R-PA), Rep. Sewell (D-AL), and Rep. Davis (D-IL). Additional cosponsors include Rep. Miller (R-WV), Rep. Ferguson (R-GA), Rep. Fitzpatrick (R-PA), Rep. Schweikert (R-AZ), Rep. Smucker (R-PA), Rep. Wenstrup (R-OH), Rep. LaHood (R-IL), Rep. Yakym III (R-IN), Rep. Steube (R-FL), Rep. Carey (R-OH), Rep. Buchanan (R-FL), Rep. Van Duyne (R-TX), Rep. Blumenauer (D-OR), Rep. Sánchez (D-CA), Rep. Higgins (D-NY), Rep. DelBene (D-WA), Rep. Chu (D-CA), Rep. Moore (D-WI), Rep. Kildee (D-MI), Rep. Beyer (D-VA), Rep. Evans (D-PA), Rep. Panetta (D-CA).
Set to expire on December 31, 2025, the New Markets Tax Credit was established in the Community Renewal Tax Relief Act of 2000 (PL 106-554) and is an essential source of financing for businesses and community facilities in low-income and rural areas across the country. Private investors will receive a 39 percent tax credit distributed over seven years for qualified investments into Community Development Entities (CDEs). These CDEs use the proceeds of those investments to finance business expansions, health centers, daycare facilities, business incubators, and other essential revitalization projects.
Since its inception, the NMTC has supported over a million jobs and invested billions into communities, including across New York's 24th District. A recent investment in Batavia, NY, will support the construction of the "Healthy Living Campus," a multimillion-dollar investment that will support the partnership between GLOW YMCA and United Memorial Medical Center. This project will create or retain nearly 400 quality jobs in the community.
“Now more than ever, it is essential that we work to create investments in our rural and low-income communities,” said Congresswoman Tenney. “Rural America is often forgotten by the Washington elites, which means that rural communities sometimes lack the necessary resources to invest, grow, and expand. Congress must make the New Markets Tax Credit permanent to allow our rural communities to continue accessing this important resource which helps to create jobs and stimulate economic growth. As a small business owner from rural America, I will always be a tenacious advocate for investments in our rural communities and businesses in Congress.”
“In Alabama’s 7th Congressional District, we have seen firsthand the power of the New Markets Tax Credit to spur investment and incentivize economic growth in some of our must vulnerable and underserved communities,” said Congresswoman Sewell. “The New Markets Tax Credit remains a critical tool to promote job creation and provide opportunities to those who need them most. We must ensure that this tool is made a permanent part of our tax code, and that’s exactly what this legislation would do.”
“Over the years, the New Markets Tax Credit has well-proven its worth by revitalizing neighborhoods and cities and that need the help the most,” said Congressman Mike Kelly (R-PA), Chairman of the Ways & Means Subcommittee on Tax. “The New Markets Tax Credit Extension (NMTC) Act would allow more communities across the country to receive the benefits that I have seen firsthand in my district, including 518 new jobs from three projects in Northwestern Pennsylvania. Since the program’s inception, the NMTC has created over 24,000 permanent jobs and 27,000 construction across Pennsylvania. Along with revitalizing American’s Main Streets, the NMTC program is a job creator and I’m proud to support this legislation again in the 118th Congress!”
“The New Markets Tax Credit has been and remains absolutely vital for many of America’s urban neighborhoods and rural communities and will provide billions of dollars for high-impact, community revitalization projects,” said Bob Rapoza, spokesperson for the NMTC Coalition. “Over the years, the credit has been instrumental in financing plant and equipment for small manufacturing businesses and patient, flexible capital to other small businesses, hospitals, healthcare centers, homeless shelters and other transformative projects that improve communities, create jobs and economic opportunity. We appreciate the leadership of Representatives Tenney and Sewell in promoting more investment in distressed communities.”
“We commend Representatives Tenney and Sewell for leading the way to make the New Markets Tax Credit a permanent part of the tax code. It is one of the most concrete steps the 118th Congress could take to spur investment in economically distressed communities—from rural towns to urban neighborhoods, and everywhere in between,” said Lori Chatman, interim co-CEO, Enterprise Community Partners. “This proposal is a bipartisan opportunity to add stability and efficiency to a program that has already delivered $120 billion in community assets and created more than 1 million jobs nationwide, including NMTCs Enterprise recently provided to finance the GLOW Healthy Living Campus in Batavia, New York.”
Read the full text of the bill here.
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